1. SHRM Poll August 18, 2008©SHRM 20081 Has your organization achieved cost savings, incurred cost increases, or did costs remain about the same as a direct result of outsourcing its HR functions? Note: HR professionals that reported their organization did not outsource any of its HR functions or don’t know where excluded from this analysis. 2004 results were recalculated to exclude respondents who selected the “do not know” response option.

2. SHRM Poll August 18, 2008©SHRM 20082 Overall, how satisfied or dissatisfied is your organization with the services provided by your outsourcing vendor (s)? Note: 2004 results were recalculated to exclude respondents who selected the “Neither satisfied nor dissatisfied” response option.

3. SHRM Poll August 18, 2008©SHRM 20083 Overall, how satisfied or dissatisfied is your organization with the relationship with your outsourcing vendor (s)? Note: 2004 results were recalculated to exclude respondents who selected the “Neither satisfied nor dissatisfied” response option.

4. SHRM Poll August 18, 2008©SHRM 20084 Overall, to what extent has outsourcing HR functions met the expectations of your organization? Note: 2004 results were recalculated to exclude respondents who selected the “Neither to a large extent nor to a small extent” response option.

5. SHRM Poll August 18, 2008©SHRM 20085 Do you expect that your organization’s outsourcing of HR functions will increase, stay the same, or decrease in the next five years?

6. SHRM Poll August 18, 2008©SHRM 20086 Projected Top 10 HR areas that will be outsourced according to organizations that expect their outsourcing to increase in the next five years n = 77 Percentage Background/criminal background checks 65% Employee assistance/counseling52% Flexible spending account administration 52% Health care benefits administration46% Temporary staffing39% Payroll administration34% Consolidated Omnibus Budget Reconciliation Act (COBRA) 32% Recruitment/staffing of employees (non-executives) 27% Training and development programs 27% Retirement benefits administration25% Note: Percentages do not total 100% as multiple response options were allowed.

7. SHRM Poll August 18, 2008©SHRM 20087 Why has your organization chosen NOT to outsource its HR functions? n = 41720042008 We wanted to maintain face-to-face contact with our employees61%54% We preferred to develop expertise in-house46%43% We do not want to lose control of our HR functions50%42% We felt it would negatively impact customer service to our employees45%28% We felt it would negatively impact the company culture37%28% We preferred to invest in technology in-house20% We felt that it would be too expensive30%18% We felt we would be unable to achieve a cost savings23%16% We do not have the resources to manage the outsourcing process18%14% We encountered resistance within senior management8% There is no need6%7% We encountered resistance within HR7%5% We have had a bad experience with outsourcing in the past3.0%3% We encountered resistance from employees in general4%1% Note: Percentages do not total 100% as multiple response options were allowed. Based on HR professionals from organization that do not currently outsource any HR functions. Data sorted in descending order by 2008 column.

8. SHRM Poll August 18, 2008©SHRM 20088 Approximately, how long has your organization being outsourcing any of its HR functions? Average number of years that responding organizations have been outsourcing any HR functions is 6 years.

9. SHRM Poll August 18, 2008©SHRM 20089 Methodology Response rate = 20% Sample comprised of 891 randomly selected HR professionals from SHRM’s membership. Margin of error is +/- 5%. Survey fielded the week of August 18, 2008